This week, find the statement of cash flow for a firm of your choosing and report the cash flow ratios. Please report and discuss 3 years of ratios for the three ratios related to debt and dividends but only the current year's cash flows per share. Show numerators and denominators for all ratios and then discuss their economic meaning. It is possible that your firm does not pay dividends (you will see dividends in the financing section of the cash flow statement).
The cash flow per share ratio is particularly challenging since most of the numbers in the statements are in thousands or millions (look at the top of the statement for a note) while the number of shares outstanding only for the current year (in yahoo.finance, under your firm's page, look in "Key Statistics" and you will find the number of shares in the right-hand column about halfway down the page). You only have to report ONE YEAR on the cash flow per share. Please do not report on Nike, as that will be the firm posted as an example. Again, please do not duplicate firms by including the name of your chosen firm in the title to your post. Also, please respond to questions/comments from your instructor regarding your post.
Below is the website discussed in the question above. The company being discussed is United Airlines.
https://finance.yahoo.com/quote/UAL/key-statistics?p=UAL
Below is an example of how he answer should be noted:
Operating Cash Flow/Current liabilities
2015: 573,151/367,191 = 1.56
2014: 381,658/396,648 = 0.9622
2013: 308,951/210,549 = 1.4674
The company has reported in increase in cash flows since 2013, but in 2014 the company reported its largest amount of current liabilities. This higher figure negatively impacted the calculated ratio and would represent that in 2014 they were not as financially secure to meet their short term liabilities.
Operating Cash Flow/ Total Debt
2015: 573,151/2,904,448 = 0.1973
2014: 381,658/2,868,588 = 0.133
2013: 308,951/1,721,949 = 0.1794
The results of the total debt ratio was very similar to the current debt ratio. The liabilities reported in 2014 were much higher in comparison to the cash flow which caused it to report a lower ratio than in the years of 2013 and 2015.
Operating Cash Flow/Cash Dividends
2015: 573,151/107,787 = 5.3174
2014: 381,658/92,104 = 4.1438
2013: 308,951/75,073 = 4.1153
The operating cash flow dividends ratio indicates the number of times that a company can pay its annual dividend with its operating cash flows. Martin Marietta has demonstrated that they are more than capable of meetings its annual dividend payments for the three years of calculations. It has also increased its dividend payment in each of three years as its cash flows has increased as well.
Operating cash flow per share
2015: 573,151/63.47(millions)= .009